Member Since: 14th Jan 2003
12th Jul 2013
Quite possible that the 'care services' business is not VAT registered due to providing exempt services, so VAT possiby not recoverable at all, irrespective of the 6-month rule!
11th Jan 2013
...to take into account would be the extent to which profits would be withdrawn -vs- retained. If those involved have a lifestyle that precludes building up reserves, then incorporation may well increase tax, especially if you can't justify a big figure for goodwill on the way in - overdrawing loan accounts may be an option in some cases, but that carries its own issues!